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The sector likewise faced broader macro headwinds, consisting of a more careful policy backdrop in China and international risk-off belief driven by geopolitical tensions and higher energy prices. Thematic ETFs likewise had a hard time for the many part, particularly those connected to carbon and high-growth innovation, as appraisal pressures and worldwide rate dynamics weighed on performance.
The petrochemical ETF considerably outperformed. Circulations in Q1 2026 were modest and extremely concentrated, reflecting selective allocation rather than broad market participation. In spite of weak efficiency, ETFs tape-recorded $27.1 million in net inflows, with only a little number of items drawing in new capital. This indicates that financiers were targeting particular direct exposures, while decreasing or turning out of others.
Trading activity stayed consistent, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. Most activity appears to have actually taken location in the secondary market, enabling financiers to adjust positions without substantial primary productions or redemptions.
In January, Boreas introduced its S&P Global High-end UCITS ETF, adding a specific niche thematic exposure focused on worldwide high-end and consumer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to release in April pending a final approval from ADX.
Q1 2026 showed some development associating with ETFs in the GCC. We expect more global and thematic ETFs to list in the GCC throughout 2026. While the dispute has affected belief and rates throughout the quarter, it has actually driven more volume and interest in regional possessions.
In spite of continuous geopolitical tensions and security risks across the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving favorable growth momentum over the last few years. While conflicts in the broader region and worldwide economic uncertainty stay a structural restraint, GCC countries have so far restricted their effect on domestic financial performance through strong financial positions, policy connection, and sustained financial investment.
3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output growth forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more positive total conditions.
Key Steps for Industrial Excellence in DubaiThe IMF's World Economic Outlook (October 2025) projects worldwide growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a fairly high-growth pocketprovided that regional threat conditions stay included and reform momentum holds.
Information from the GCC Statistical Center show that non-oil sectors already account for more than 73 percent of overall GDP, a share that has actually continued to rise as federal governments broaden financial investment in services, facilities, and innovation. According to Oxford Economics, non-energy activity across the GCC is forecasted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in innovation and AI-related infrastructure.
Public-sector financial investment and reform stay central to sustaining this pattern. Policy steps focused on drawing in foreign direct financial investment, relieving foreign ownership rules, broadening capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the area's direct exposure to oil rate volatility. While hydrocarbons no longer dominate the growth outlook, oil profits are anticipated to play a supportive role in 2026.
The World Bank, on the other hand, tasks 3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. The IMF Sees momentum improving, with GCC output growth forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive general conditions.
The IMF's World Economic Outlook (October 2025) tasks global growth relieving to 3.1 percent in 2026, with sophisticated economies around 1.5 percent and emerging market and developing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC expansion would place the area materially ahead of the world average and slightly above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a fairly high-growth pocketprovided that local danger conditions stay consisted of and reform momentum holds.
Information from the GCC Statistical Center reveal that non-oil sectors currently represent more than 73 percent of overall GDP, a share that has continued to rise as governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising financial investment in innovation and AI-related facilities.
How to Secure a Leading Advantage in 2026Public-sector investment and reform remain central to sustaining this pattern. Policy measures aimed at attracting foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and lower the area's exposure to oil price volatility. While hydrocarbons no longer dominate the growth outlook, oil earnings are anticipated to play a supportive role in 2026.
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